Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 3, Problem 6CQQ
To determine
The
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Kayla can cook dinner in 30 minutes and
wash the laundry in 20 minutes. Her
roommate takes twice as long to do each
task. How should the roommates allocate
the work?
a. There are no gains from trade in this
situation.
b. Kayla should do more of the washing
based on her absolute advantage.
c. Kayla should do more of the washing
based on her comparative advantage.
d. Kayla should do more of the cooking
based on her comparative advantage.
Kayla can cook dinner in 30 minutes and wash the laundry in 20 minutes. Her roommate takes twice as
long to do each task. How should the roommates allocate the work?
Oa. There are no gains from trade in this situation.
O b. Kayla should do more of the washing based on her absolute advantage.
Oc. Kayla should do more of the washing based on her comparative advantage.
O d. Kayla should do more of the cooking based on her comparative advantage
An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes.a. Who has the absolute advantage in coffee? Explain.b. Who has the comparative advantage in cof-fee? Explain.c. If the two countries specialize and trade with each other, who will import coffee? Explain.d. Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.
Please answer parts iv and v
Chapter 3 Solutions
Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
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- Solve the problem. Show work and do not use AIarrow_forwardSean and Yvette are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Sean Yvette BARLEY (Bushels) On the following graph, use the blue line (circle symbol) to plot Sean's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Yvette's PPF. 120 108 96 84 72 60 48 36 24 12 0 0 Alfalfa Barley (Bushels per acre) (Bushels per acre) 18 6 28 7 60 120 180 240 300 380 420 480 540 600 ALFALFA (Bushels) Sean's PPF Yvette's PPF (?)arrow_forward8arrow_forward
- Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia, which has the same number of workers, each worker can produce 7 units of food or 1 unit of clothing daily. Why does the United States have an absolute advantage in both goods? Which country enjoys a comparative advantage in food? Why? this question was not well explained last time i asked it neither they use the numbers in the question so please i need the answer in simple way using the numbers and the countries are mentioned in the question thank youarrow_forwardEngland and Scotland both produce scones and sweaters. Suppose that an English works can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour. a. Which country has the absolute advantage in the production of each good? Which country has the comparative advantage? b. If England and Scotland decide to trade, which commodity will Scotland trade to England? Explain. c. If a Scottish worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trade? Explain.arrow_forwardSuppose that one day of labor in each country produces the following quantities of fish and cheese: 1. Does France have a comparative advantage in the production of fish, cheese, or neither? Explain. 2. Does Japan have a comparative advantage in the production of fish, cheese, or neithter? Explain. 3. Suppose the countries decide to trade with each other—1 ton of cheese for 3 tons of fish. Would this trade be advantageous to both countries? Explain. Country Fish (tons) Cheese (tons) France 80 40 Japan 200 50arrow_forward
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